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2015 (10) TMI 1807 - AT - Central ExciseDenial of exemption claim - Captive consumption - Held that - By Section 111 of the Finance Act, 2014, Notification No. 24/2012-C.E., dated 8-5-2012 has been retrospectively amended w.e.f. 17-3-2012 and the amended notification exempts not only the Polyester Staple Fibre and Polyester Filament Yarn but also the Polyester Tow manufactured and captively consumed within the factory of production from plastic scrap or plastic waste/polyester waste including waste PET bottles. Since the duty demand in this case is for the period 8-5-2012 to March, 2013, the entire duty demand is covered by the retrospective amendment to Notification No. 24/2012-C.E., dated 8-5-2012 by Section 111 of the Finance Act, 2014. - impugned order confirming the duty demand along with interest and imposition of penalty would not survive. The same is set aside. - Decided in favour of assessee.
Issues:
Interpretation of Notification No. 24/2012 regarding exemption of duty on Polyester Tow used in manufacturing Polyester Fibre from waste PET bottles. Analysis: The appellant, a manufacturer of Polyester Staple Fibres and Polyester Filament Yarn from Polyester waste, faced a duty demand of &8377; 15,80,22,840/- for using Polyester Tow in the manufacturing process, which was not covered by the exemption notification. The department argued that Polyester Tow should be chargeable to duty. The Commissioner passed an order confirming the duty demand, interest, and penalty. The appellant filed an appeal along with a stay application. Upon hearing both sides, the Tribunal decided to proceed with the final disposal of the matter instead of focusing on the stay application. Both parties agreed that a retrospective amendment to Notification No. 24/2012 by Section 111 of the Finance Act, 2014, now exempts Polyester Tow manufactured and consumed within the factory from plastic waste, including waste PET bottles. As the duty demand period falls within the retrospective amendment, the entire duty demand is covered. Consequently, the Tribunal set aside the impugned order confirming the duty demand, interest, and penalty. The appeal and stay application were allowed, providing consequential relief to the appellant. The retrospective amendment to the notification resolved the issue of duty liability on Polyester Tow used in manufacturing Polyester Fibre from waste PET bottles, leading to a favorable outcome for the appellant.
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